Economic Prospectus

Economic Prospectus 2013 for the Shire of Roebourne 2 Shire of Roebourne Economic Prospectus 2013 Welcome 3

Message from the Shire President Contents

The Shire of Roebourne is undergoing a rapid transformation for the better. Message From The Shire President 2 Sustained growth in the resource and energy sectors has become business -as-usual in our Shire in recent years and there are currently billions of dollars Who And Where We Are 3 in new projects either committed or under construction. Our economy is undergoing significant expansion As well as a booming business environment, the Our Towns 5 and diversification and, as a result, our population Shire boasts a distinctive landscape – with a mix of is increasing, and new housing is being built at an recreational opportunities for residents and visitors People, Amenities & Lifestyle 7 unprecedented rate. As a local government, we have including boating, camping, 4WD adventures, fishing and responded by delivering new quality infrastructure not cultural heritage activities. previously seen this far north in . Major In fact, we are a Shire of six distinct settlements, Key Infrastructure 14 projects completed in 2012 included the $4.9-million Karratha, Dampier, Wickham, Roebourne, Point Samson Youth Shed, the $10.1 million Pam Buchanan Family and an historic settlement at Cossack. Great change Centre and the $6.3 million Frank Butler Community is also on the horizon in these communities, in particular What We Do 17 Centre. At the time of writing this prospectus, the Shire in Wickham where an adopted townsite structure plan of Roebourne excitedly awaits the delivery of a $63.5 is already guiding a number of new developments. What’s Happening In Our Region 27 million Karratha Leisureplex, scheduled for opening in Our focus over the next two financial years will be June 2013. on undertaking and completing structure plans for the But why build a youth centre, family centre, community towns of Dampier, Roebourne and Point Samson. Where We Are Headed 29 centre and leisure complex of a size and quality you This economic prospectus has been prepared as would expect to see in metropolitan or a major background information for potential investors, funding Key Reference Documents 31 regional city, in the Shire of Roebourne? Well, because agencies, entrepreneurs, small-to-medium business that is what we aim to be ourselves one day, a city of owners, families and others wanting to share and choice. We are building infrastructure in the strong belief contribute to the Shire’s future growth. that in the coming years Karratha will be a major regional city of 50,000 people. We encourage you to contact us to discuss your interest in this place, which I am proud to call home. We cannot, of course, build a city of choice in Karratha all on our own. Fiona White-Hartig The State Government has shown its commitment to the region by investing more than $1 billion in Royalties Shire of Roebourne President for Regions funding into the , much of that into Karratha. This includes fast tracking housing construction, creating additional commercial/industrial space and through sustained efforts to improve the overall quality of life so as to attract and retain our most valued asset - people. 4 Shire of Roebourne Economic Prospectus 2013 Welcome 5

Who and where we are Economy People (ABS 2011) Estimated residential population Total workforce including 24,916 The Shire of Roebourne is located in the dynamic Pilbara region of northwest residential 21,983 (2012) (ABS 2012) and FIFO Western Australia. The region is the engine of Australia’s economic growth. Population growth over last decade 4.88% Unemployment (Dec 2012) 2.14% With a range of lifestyle attributes and business opportunities, it is an ideal place Residential population (i.d. forecast 2013) 25, 621 to invest, relocate or build a career. Headline Gross Regional $19,219 MM Product (2012) Population Density 0.02 per/ha

Local GRP (Industry) (2012) $3,072 MM Males / Females 60% / 40%

Aboriginal and Torres Strait Islander Local GRP (Residents) (2012) $2,549 MM 2,022 (8.8%) people Largest industry by 5,246 Australian Citizens 15,280 employment (2012) (Construction)

Largest industry by output $18,894 MM Australian born 13,746 (2012) (Mining) Point Sampson Dampier Eligible voters 11,250 Wickham Exports per annum > 250 MM tonnes Median Age 32 (WA 36) Karratha Roebourne Over $15 billion dollars worth of resource related infrastructure under construction or consideration within the Shire with a further $75 billion in the West Pilbara Children below 15 yrs 20.5%

Shire of Roebourne Major new Strategic Industrial Area and port at Anketell Couples with children 30% under planning with a potential output of over 350 MTPA

One of the busiest regional airports in Australia with Older couples without children 1% (WA 8%) around 70,000 passengers per month (838,000 total passengers in 2011/12) People aged 15+ 18,196

More than a 2100 registered businesses, with an average People over 65 (1.9%) of 100 new businesses registered each year Pilbara Over 5000 active ABNs in the Shire with approximately Average Wage $78,445 500 new ABNs for 2012 $2,839 Median weekly household income (WA $1,415)

NORTH Geography Number of earners 10,545

SCALE (km) Unemployment 2% 0 100 Square kilometers in area 15,278 Households renting 57% Kilometres north of Perth 1,566 SEIFA index of disadvantage 2011 1060 Comprises the townships of Karratha, Dampier, Wickham, Roebourne, Point Samson and Cossack A high proportion of young families One of four local government areas that make up the Pilbara Regional Council Average number of children per family 1.9

Western o Australia Average Max. Temp 32 C Most common ancestries were: Australian 27.6%, English 22.7%, Scottish 5.8%, Irish 5.7% and German 2.2% o Perth Average Min. Temp 21 C Most common countries of birth: Australia. 59.3%, New Zealand 5.3%, England 3.3%, Philippines 1.8%, China 1.2% Mean Annual Rainfall 274mm and South Africa 1.1% Top 5 languages at home other than English: Mandarin 1.3%, Yindjibarndi 1.1%, Tagalog 0.9%, Filipino 0.7% and Thai 0.4% 6 Shire of Roebourne Economic Prospectus 2013 Welcome 7

Our Towns The Shire of Roebourne is made up of a network of settlements, each with its own function, distinct flavour and set of business and lifestyle opportunities.

Karratha Dampier Roebourne Wickham Point Samson Cossack (Population 16,476 ABS 2011) (Population 1265 ABS 2011) (Population 1410 ABS 2011) (Population 298 ABS 2011) (Population 1651 ABS 2011) (Population 2) Karratha is the largest town in the Dampier is 21 kilometres west In 1866 Roebourne was founded Point Samson is a small coastal Wickham is 13km north of Cossack is a small historic Shire of Roebourne comprising of Karratha. on the banks of the Harding River community 19km north of Roebourne and 60 kms east of settlement between Point the suburbs of Bulgarra, Pegs as an administrative and service Roebourne with a population of It is surrounded by major industry Karratha. It was established in Samson and Wickham. Creek, Millars Well, Nickol, Nickol centre for the emerging pastoral around 300. activities with some 11,000ha the 1970s to house workers in the West, Baynton, Baynton West and industry. Established in 1872 it was the first of industrial land, the Woodside expanding iron ore industry and It was originally founded as a Tambrey. port in the area, though the town operated North West Shelf Venture’s It has a strong heritage flavour with nearby port Cape Lambert. port for the region and played an itself failed to flourish. Today, several It is the main service centre in Karratha Gas Plant, Woodside’s a range of tourism attractions and important role in the development The town is serviced by a sports National Trust heritage buildings the West Pilbara. It has a current Pluto Gas Plant and Rio Tinto’s iron community amenities. Roebourne of the Shire. It is a popular day trip field, medical facilities and a exist, including the Bond Store, population of 16,500 and has an ore and salt operations. Dampier is is predominantly indigenous. It is and tourism location with boutique medium sized retail centre. Most Telegraph Building and Court aspirational target of 50,000 via the Australia’s highest value port with one of the smaller towns within the accommodation, restaurants, buildings and facilities are owned House. While the town currently Karratha City of the North Plan. It exports of $34 billion (28 per cent) of Pilbara, however with revitalisation caravan parks, camping facilities by Rio Tinto who have recently serves as a tourist destination, plans has range of services and facilities WA’s merchandise exports in 2011 plans being developed and the and ample fishing and swimming entered into discussions with state are in place to re-create it as a small including a regional hospital, airport, and second highest volume port. growth of nature and cultural spots. government agencies and the Shire lifestyle community. major shopping centre, sports Dampier is also home to the King tourism it has significant potential. There is a small marina and boat about future growth plans which The Cossack Art Awards, which facilities, Institute/high school Bay Supply Base which provides launch facilities. It is a popular will see an investment of $336m celebrated its 20th anniversary campus, aquatic centre and key important support to the offshore oil weekend destination, with Sunday including new residential and FIFO in 2012, are now respected government agencies. and gas industry. afternoon fish-n-chips and beer a accommodation, blocks for other internationally and recognized The Karratha Industrial Estate It is also an access point for many local favourite. agencies, new administration throughout the nation as the most (KIE), immediately south of the of the Shire’s natural and cultural and training centre and two new isolated acquisitive art exhibition in main township has about 640ha of attractions including the Dampier recreational parks as part of the the world. zoned industrial land. Works are Archipelago, Montebello Islands Wickham South Phase 2 Project. near completion on a new industrial and the Burrup Rock Art. There is a area, Gap Ridge Industrial Estate, hotel/motel, some limited shopping, comprising 114 lots which is being restaurants and recreation facilities. project managed by LandCorp. This Long term visioning has identified will provide much needed land for the potential to establish a marina logistics and mixed use industry in and waterfront commercial strip. closer proximity to the Dampier Port and Karratha Airport. 8 Shire of Roebourne Economic Prospectus 2013 People, Amenities & Lifestyle 9

People, Amenities & Lifestyle

Climate Figure 3: With an average maximum temperature of 32⁰C and Comparative Demographic Age Profile (Years) minimum of 21⁰C, climate is one of the main reasons 25 residents choose to live here. The coolest months are June and July. Average annual rainfall is 274mm, most 20 of which falls in December, January and February. While the Shire is located in a cyclonic zone, high 15 building standards and emergency procedures assist in mitigating risk. 10

Demographics 5 The Shire’s robust economy, nature of related work and

the lifestyle opportunities afforded by the local climate 0-4 5-14 15-19 20-24 25-34 35-44 45-54 55-64 65+ means that we have a young, productive and highly WA Average Shire of Roebourne aspirational resident population. At the 2011 Census, the median age was 32 and there are a high proportion (Data Source: ABS, 2011) of young families. This is reflected in the above average household size of 2.9. The Shire also has a higher Figure 4: percentage of 20-55 year olds due to the substantial Population growth rate by region and WA employment opportunities that exist in the region. 2001-2011 (%) The Shire of Roebourne’s population is also characterised as one of the highest population growth Roebourne rate regions in WA, certainly when compared to other WA

members of the Western Australian Regional Capitals Broome

Alliance (WARCA). Geraldton- 2006-2011 Greenough 2001-2006 Figure 2: Albany

Annual Rainfall and Temperature Bunbury

Kalgoorlie- 40 80 Boulder

35 70 Port Hedland

10 20 30 40 50 60 30 60 Mean Rainfall (mm) Rainfall Mean 25 50

20 40

15 30 Mean Temperature (C)

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5 10 One of the main attractions in the Shire of Roebourne is the lifestyle, amenities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mean Temperature Range Mean Rainfall and strong sense of community. The (Data Source: BOM, 2010) Shire is keen to build on this to improve the quality of life for local residents and attract a new generation of entrepreneurs and community members. 10 Shire of Roebourne Economic Prospectus 2013 People, Amenities & Lifestyle 11

Social and Economic Wellbeing Cost of Living Table 3: The Index of Relative Socio-economic Advantage As a regional location with high demand for services, Comparative Regional Price Index and Disadvantage (IRSAD) summarises information it should come as no surprise that the cost of living in Recreation and Health Care Town RPI Food Clothing Housing about the economic and social conditions of people the Shire is around 37% higher than metropolitan Perth Education and Personal and households within an area, including both relative (Table 2). Upon closer inspection, there are significant advantage and disadvantage measures. Generally, the differences in the cost of basic goods such as clothing Karratha 137.51% 115.5% 117.4% 202.0% 109.5% 112.2% Shire as a local government area has an index of relative (17.4%), food (15.5%) and personal/health care (12.2%), socio-economic advantage and disadvantage above the with the most critical being housing which is 102% Broome 115.2% 119.7% 120.9% 116.4% 116.0% 107.7% state average and other Pilbara local governments (Table higher than Perth. The Shire, industry and the State 1). This is largely the product of many households with Government are focusing their attention on addressing Bunbury 100.6% 106.6% 106.8% 93.6% 106.4% 100.4% high incomes, many people in skilled occupations, low the affordability and availability of housing, land and unemployment and few people with low incomes or in accommodation. Derby 132.6% 111.4% 129.3% 180.4% 110.4% 107.5% unskilled occupations. Table 2: Table 1: Index of relative socio-economic advantage Exmouth 115.8% 127.3% 117.5% 114.8% 110.1% 105.3% Index of relative socio-economic advantage and and disadvantage (IRSAD) for settlements (State disadvantage (IRSAD) for Local Government Areas Suburbs) Geraldton 101.7% 106.1% 119.8% 96.3% 101.8% 103.1% (LGAs) Kalgoorlie 106.2% 111.2% 107.6% 106.5% 107.9% 102.9% Settlement Score Settlement Score WA LGA IRSD Score Ranking Kununurra 117.9% 118.9% 122.9% 123.9% 116.2% 107.5% (Out of 139) Port Hedland 1109 Karratha 1010 Port Hedland 136.1% 112.8% 117.9% 196.5% 109.3% 109.0% Peppermint Grove 1155 139 Dampier 1100 Kalgoorlie 1003 Perth 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Perth 1082 129 Point Samson 1079 Wickham 992 (Data Source: DLG, 2011)

Roebourne 1064 126 Tom Price 1053 Broome 933 Recreation, Leisure, Arts and Culture There is a mix of formal, informal and outdoor lifestyle Shire of Roebourne announced in May 2013 will deliver Port Hedland 1042 116 Paraburdoo 1033 Onslow 906 amenities throughout the Shire. This includes two community hubs in Dampier and Wickham with improved swimming pools, indoor and outdoor regional recreation infrastructure, services and events. Ashburton 1029 110 Pannawonica 1030 Roebourne 816 facilities and ample boating infrastructure (Table 3). Outdoor activities include visitation to the Millstream There are also a number of arts and cultural amenities Exmouth 1015 101 National Park, Dampier Archipelago, and local swimming South Hedland 1024 Nullagine 762 including the Roebourne Old Gaol Museum, Karratha and fishing beaches. The towns of Point Sampson, Arts and Learning Centre, historic Cossack and Dampier, Wickham and Karratha have amongst the highest Busselton 1002 85 Newman 1016 Marble Bar 702 numerous indigenous art galleries. New facilities include boat ownership in W.A. Many of the region’s natural the Pam Buchanan Family Centre, the Frank Butler wonders are only accessible by 4WD vehicle. Information Community Centre and the Karratha Leisureplex. A Geraldton 972 55 (Data Source: ABS, 2011) about the Shire’s natural features and cultural heritage is partnership between Rio Tinto and the available at the Karratha and Roebourne Visitor Centres. East Pilbara 961 39 Table 4: Shire of Roebourne Recreation Facilities Wiluna 814 7 Indoor sports Facilities Lit ovals Swimming Pool Harbour Boat Ramp Halls Creek 671 1 complex

Dampier 0 1 - 1 3

Karratha 1 4 50m - 2

Point Samson 0 0 - 1 2

Roebourne 0 1 25m - -

Wickham 0 1 25m 1 1

(Data Source: WAPC, 2012) 12 Shire of Roebourne Economic Prospectus 2013 People, Amenities & Lifestyle 13

Events and Community Activities Health Child and Family Day Care The Shire of Roebourne has an established calendar The Shire of Roebourne has two hospitals, employing There are seven family day care and two after school centres in the Shire. of community events. The pinnacle event is the Shire’s more than 120 people. The larger of the two, Nickol Bay Table 8: Cossack Art Awards followed by the Red Earth Arts Hospital is a 28 bed facility, offering services in accident Shire of Roebourne Child and Family Day Care Provision Festival and the FeNaCLNG Festival. Other major events and emergency, acute in-patient care, obstetrics and include NAIDOC Week, the Citizenship and Australia general surgery. Roebourne Hospital provides general Family Day Day activities, Karratha Community Celebration and the medical, paediatrics, physiotherapy and home and LDC Occasional After School Walkington Academic Awards. community care services. A new $207m health campus Care for Karratha is under planning with a new greenfield site in the Karratha CBD under consideration. There are Location Centres Places Centres Places Centres Centres Education currently 10 General Practitioners servicing the Shire. The Shire is well supplied with quality education facilities Dampier 1 17 0 0 0 1 and services. There are currently eight primary schools Table 6: and, three high schools (one private and two public) Health Services Karratha 2 74 2 35 7 1 teaching over 3,000 students and serviced by over 200 teachers. In addition there are two Pilbara Institute Health Facility Medical Staff Nursing Staff campuses (Table 4), servicing 6000 enrolees with Point Samson 0 0 0 0 0 0 total staff of over 200. The new Baynton West Primary Nickol Bay 10 43 School is operational and the Lower School Campus of Hospital Roebourne 1 20 0 0 0 0 Karratha Senior High School is under construction with a completion date in 2013. Roebourne Wickham 1 24 0 0 0 0 0 15.5 The schools are supported by four libraries – one in each District Hospital of the townships of Karratha, Roebourne, Wickham and Total 5 135 2 35 7 2 Dampier. The Karratha Library is a community library Total 10 58.5 located in the Pilbara Institute. (Data Source: WAPC, 2009)

(Data Source: WAPC, 2009) Table 5: Education Provision Government Agencies Public Transport There are many State Government agencies and Commonwealth agencies with offices in Karratha or Dampier, Current The Shire of Roebourne, in partnership with Rio Tinto including: and the Public Transit Authority, provide a tri-weekly Table 9: Primary Secondary TAFE Community Bus service between towns. It currently Location State and Commonwealth Agencies School School College operates on Tuesdays, Saturdays and Sundays between Point Samson and Dampier including the towns of Department of Education - Pilbara Regional Education Office Department of Planning Cossack 0 0 - Wickham, Roebourne and Karratha.

Department of Environment and Conservation Department of Water Dampier 1 0 0 Policing The Shire has a low crime rate and is supported by 68 Australian Quarantine Inspection Services Department of Commerce Karratha 6 2 1 officers stationed across four outposts. A new integrated Police facility has recently been opened in Karratha and Pilbara District Police Office Department of Fisheries Point Samson 0 0 0 can accommodate 60 staff. Table 7: Department of Mines and Petroleum Department of Housing Roebourne 1 1 1 Police Services

Department of Corrective Services Department of Transport Wickham 1 0 0 Stations Courthouse Officers

Department of Agriculture and Food Department for Child Protection Total 8 3 2 Dampier - 4

(N.B. Roebourne is a District High School) Department of Sport and Recreation Water Corporation Karratha Karratha 51

Disability Services Commission LandCorp Roebourne Roebourne 11

Fire and Emergency Services Horizon Power Wickham - 4

(Data Source: WAPC, 2012) Dampier Port Authority Australian Customs

Pilbara Development Commission 14 Shire of Roebourne Economic Prospectus 2013 Key Infrastructure 15

Key Infrastructure

Ports Airport There are two ports in the Shire of Roebourne – Cape The Karratha Airport serves over 830,000 passengers Lambert and Dampier – both servicing the export of iron a year. With the resource industry heavily reliant on ore. There has been a steady rise in both the volume of FIFO workers it is a valuable local asset. It is serviced exports and number of vessels, now approaching more by Qantas, Alliance, Airnorth and Virgin airlines. There than 250 million tonnes per annum, compared with five are 78 flights per week, including several daily flights to years ago when it was less that 100 million tonnes per Perth and weekly flights to Darwin, Brisbane, Melbourne, annum. The Port of Dampier alone receives over 2300 Sydney and other regional centres. Building on the trade vessels each year. Rio Tinto is in the process of recent runway and carpark upgrades there is a master expanding its Cape Lambert port to a capacity of 180 plan in place to expand the terminal, helicopter facilities million tonnes per annum. and development of a commercial/logistics hub. Table 10: The Karratha – Perth route is the 19th busiest in Australia Port of Dampier Freight Data and second busiest in WA. The Karratha route grew by 12.3 per cent during 2012 (Figure 6). Year Tonnage Trade Vessels Figure 6: Karratha Airport Passenger Statistics 2002/3 92,000,000 1777 YE Dec YE Dec % Moving annual data 2003/4 89,000,000 1860 2011 2012 Change

Passengers carried (000s) 679.3 762.5 12.3 2004/5 96,000,000 2105

Seats (000s) 1 023.0 1 217.7 19.0 2005/6 110,000,000 2295

Load factor (%) 66.4 2295 -3.8* 2006/7 126,000,000 2375

Aircraft trips 7 218 8 215 13.8 2007/8 134,000,000 2015

2008/9 140,000,000 1789 1300 85

80 2009/10 170,000,000 2225 1000 75 Load factor (%) factor Load

2010/11 165,000,000 2381 700 70

65 2011/12 172,000,000 2463 400

Passengers/seat (000s) Passengers/seat 60 (Data Source: Dampier Port Authority, 2012) 100 55 Citic Pacific Mining Ltd is constructing a port at Cape Dec ‘11 Dec ‘10 Dec ‘12 Dec ‘07 Dec ‘02 Dec ‘04 Dec ‘05 Dec ‘08 Dec ‘03 Dec ‘09 As the powerhouse of the dynamic Preston, 100km south-west of Karratha. There is also Dec ‘06 a plan to build a new multi-user deep-water port at Pilbara region, the Shire of Roebourne Passengers Load factor (%) Seats Anketell, 30km east of Karratha. Three companies, API, has high quality port, airport, rail and FMG and MCC, have expressed interest in the Anketell utility infrastructure. They sustain high Strategic Industrial Area. A number of Government * Percentage point difference Agencies including LandCorp, Dampier Port Authority (Source: BITRE 2013) volume traffic and upgrade plans are in and the Department for State Development are involved place to account for forecast population in the planning. When fully operational it will have capacity for 350 million tonnes/year and will include and economic growth. a 1400ha industrial estate. There are several other resource projects under planning which will require port infrastructure in the Cape Preston and Balla Balla areas. Kalumburu

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Broome HWY Downs Rd u Figure 7: Table 11: DERBY Ord D Rd GREAT d Fletchers Creek Shire of Roebourne Rail and Road Network Electricity Generation Upgrades me Rd y e Broo o tin s zr un it B Leopol F Broome Down Location Owner Size SuppliesFitzroy HWY Fitzroy ret Halls Creek rga Ma Rd Crossing Duncan HWY Dampier Rio Tinto Iron Ore Hamersley Iron 4X30 MW oil/gas steam turbines Karratha and Dampier River Shire of Roebourne River

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114°E 116°E 118°E 120°E 18 Shire of Roebourne Economic Prospectus 2013 What we do 19

The Shire of Roebourne is the powerhouse What we do of the Pilbara, which accounts for 23% of Resource Sector WA’s Gross State Product. Continued growth The resource extraction industry is the mainstay of the Pilbara economy totalling more than $45 billion worth is forecast with strong demand from across of exports. The Shire of Roebourne is the region’s major service and extraction hub where port, rail, government and industry intersect. the globe for local resources. Major private Table 13: sector investments, high wages and housing Value of Minerals and Energy by LGA construction rates are all indicative of confidence in the local economy. Region 2009 Value 2010 Value 2011 Value

East Pilbara $ 18,658,176,712 $ 31,422,860,515 $ 40,131,860,964

Ashburton $ 9,672,755,826 $ 17,092,127,511 $ 21,654,012,317

Roebourne $ 239,871,380 $ 156,649,902 $ 135,540,662

Port Hedland $ 224,690,515 $ 256,522,603 $ 743,891,955

Total $ 28,795,694,827 $ 48,928,160,531 $ 62,665,305,898

Offshore Petroleum $ 16,772,795,847 $ 22,820,932,972 $ 23,495,023,785

Major Resource Projects There are three major resource companies operating in the Shire (Rio Tinto, Woodside Energy Ltd and Citic Pacific Mining Ltd. Each company is currently operating or rolling out mining and energy extraction infrastructure investments worth an estimated $70 billion (Table 14). The most significant include the Woodside operated North West Shelf Venture, Woodside’s Pluto project, Rio Tinto’s expansion of Dampier Port, Cape Lambert Port and Citic Pacific Mining Ltd’s Sino Iron Project at Cape Preston. Table 14: West Pilbara - Selected Resource Infrastructure Projects

Project Capital Investment Construction Workforce Operational Workforce

Citic Pacific Mining Ltd’s Sino Iron $6.1b 4000 500 Ore Project

Chevron Gorgon Joint Venture $52b 3440 330 offshore gas extraction

Chevron Wheatstone Project $28.4b 5000 400

Burrup Nitrates Technical $600m 600 65 Ammonium Nitrate Plant

Rio Tinto Port and Rail Expansion $5b n/a n/a

West Pilbara Iron Ore Project $6b 3500 1000

Cape Lambert Iron Ore Project $3.7b 3000 1000

Total $101.8b 15,040+ 2,895+

(Data source: Department of Mines and Petroleum 2013) 20 Shire of Roebourne Economic Prospectus 2013 What we do 21

Employment Income and Wages Housing As would be expected in a resource oriented economy, the vast majority of people are employed in the construction Median household weekly income in the Shire of The Shire has a robust and diverse housing market. and mining sectors. Roebourne is $2839; with 54% of households earning While existing stock is weighted towards three and $2,500 or more per week. (Source: ABS, 2011). four bedrooms, there are an increasing number of units Table 15: coming onto the market. Top Resident Employment by Sector for Pilbara LGAs (2011) Figure 9: Weekly Household Income (%) With jobs growth and high wages, it is not surprising that the Shire has had a strong housing and property market. Place of Residence Roebourne Ashburton East Pilbara Port Hedland $5000 + There has been a steady increase in housing sales and construction with an average of almost 600 subdivision Mining 2,712 2,961 3,872 1,887 $4000-$4999 approvals each year in Karratha alone. Average sales prices also rose dramatically. For example, between $3500-$3999 Construction 2,642 905 593 1,164 2007 and 2010, average dwelling prices increased by $3000-$3499 a total of 45%. The current situation is that housing availability has improved, with greater diversity of Transport, postal and warehousing 770 241 141 541 $2500-$2999 housing styles (e.g. units, town houses, cottage $2000-$2499 dwellings in addition to standard 3x2 or 4x2 dwellings) 161 Public Administration and Safety 655 161 324 and prices have moderated. $1500-$1999 Figure 11: $1250-$1249 Retail 641 180 157 460 Dwelling Structure within the Shire of Roebourne $1000-$1249 2011 (% of dwellings) Education and Training 638 224 243 439 $800-$999 100

$600-$799 Accommodation and Food Services 556 352 392 339 80

$400-$599 Manufacturing 493 80 134 405 60 $300-$399

(Data Source: ABS, 2011) $200-$299 40

$1-$199 Most people are employed as tradespeople, labourers Figure 8: Shire of Roebourne Regional WA 20 Negative and in the production process. There are, however, more Comparative Employment Occupation Position Income / Nill professionals and managers in the Shire of Roebourne Income (Data Source: ABS, 2011) compared to the rest of the Pilbara (Figure 8). Separate Medium High Caravans, cabin, Other 5 10 15 20 25 house density density houseboat Clerical and Major construction projects and expanded operations Administrative Shire of Roebourne Regional WA have seen significant demand for labour, resulting in high Skills and Education (Data Source: ABS, 2011) wages and a consistently lower unemployment rate than Machinery The nature of resource-aligned projects together with elsewhere in Australia (Figure 9). Operators and Drivers the range of local service sector jobs is reflected in education and qualification of local residents. Most Figure 12: Table 16: Value of Building approvals 2001-2012 Comparative Unemployment Rates workers have certificate level qualifications required for Labourers the construction, hospitality and resource extraction (Value $’000) industries. From a business point of view, this means 350,000 March 2011 March 2012 that there is a pool of skilled labour to draw on. Technician 300,000 and Trades Shire of Roebourne 2.8 1.8 Figure10: Shire of Roebourne Resident Qualifications 250,000 2011 (% of persons aged 15+) 200,000 Pilbara 3.3 2.1 Professionals 50 150,000

Regional Australia 5.4 5.3 100,000 40 Manager 50,000 Australia 5.1 5.2 30

500 1000 1500 2000 2500 3000 3500 ’01/ ’02/ ’03/ ’04/ ’05/ ’06/ ’07/ ’08/ ’09/ ’10/ ’11/ FYTD 20 (Data Source: DEEWR, 2012) (8mth) Roebourne Ashburton (Data Source: ABS, 2011) 10 East Pilbara Port Hedland

Bachelor or Advanced Vocational No (Data Source: ABS, 2011) Not stated Higher degree Diploma or qualification Diploma

Shire of Roebourne Regional WA

(Data Source: ABS, 2011) 22 Shire of Roebourne Economic Prospectus 2013 What we do 23

Table 17: Table 18: Karratha Residential Sales Advertised Residential Rental Market Data

Pricing and Availability Quarter Sales Min $ Max $ Avg $ Dwelling Type Quarter Number Min $ Max $ Average $ Trend Sep 12-Mar 13 Mar-09 41 $ 44,000 $ 858,000 $ 632,354 Sep-12 17 $550 $1,300 $947 Jun-09 45 $ 317,500 $ 1,125,000 $ 770,044 Ave Pricing – Down One Bed Dec-12 22 $550 $1,250 $898 Availability – Up Sep-09 82 $ 440,000 $ 1,200,000 $ 741,925 Mar-13 19 $460 $1,200 $698

Dec-09 53 $ 480,000 $ 1,280,000 $ 879,868 Sep-12 30 $700 $1,500 $1,062 Ave Pricing – Down Mar-10 58 $ 615,000 $ 1,500,000 $ 867,502 Two Bed Dec-12 35 $650 $1,500 $987 Availability - Up Jun-10 42 $ 599,000 $ 1,800,000 $ 945,952 Mar-13 36 $650 $1,250 $903

Sep-10 39 $ 710,000 $ 1,215,000 $ 923,872 Sep-12 197 $600 $2,350 $1,345 Ave Pricing – Down Three Bed Dec-12 159 $600 $2,350 $1,266 Dec-10 31 $ 600,000 $ 1,290,000 $ 861,952 Availability - Down

Mar-11 35 $ 46,800 $ 1,193,000 $ 825,523 Mar-13 184 $600 $1,250 $1,172 Sep-12 185 $900 $2,800 $1,801 Jun-11 45 $ 620,000 $ 1,295,000 $ 806,011 Ave Pricing – Down Four Plus Bed Dec-12 144 $1,000 $4,200 $1,738 Sep-11 51 $ 660,000 $ 1,375,000 $ 878,549 Availability - Up Mar-13 160 $1,000 $3,000 $1,608 Dec-11 61 $ 114,999 $ 1,345,000 $ 830,648 Sep-12 429 $550 $2,800 $1,604 Mar-12 54 $ 620,000 $ 1,610,000 $ 879,204 Ave Pricing – Down Total Dec-12 360 $550 $4,200 $1,401 Availability - Down Jun-12 35 $ 580,000 $ 1,400,000 $ 876,014 Mar-13 399 $460 $3,000 $1,301 Sep-12 24 $ 600,000 $ 1,130,000 $ 815,333 (Data Source: PDC, 2013) Dec-12 19 $ 590,000 $ 1,285,000 $ 799,632 The average price for advertised rentals has dropped over the last three quarters (Sep 12 -Mar 13) by around $300

(Data Source: PDC, 2013) per week, reflecting a softening of demand and significant availability of stock of all dwelling types. The most expensive land currently in the wider Pilbara is Onslow, followed by Point Samson and South Hedland. The data over the last four years indicates that the number of average sales per quarter peaked in 2009, with the The towns with the greatest availability of land are Newman and Karratha. average pricing peaking in 2010. For 2011 the number of sales improved on 2010 however the prices stabilised. For 2012, both the number of sales and average prices have declined in comparison to the previous three years. Table 19: Figure 13: Comparative Pilbara Land Sale Prices March 2013 Advertised Residential Dwellings for Sale and Average Price, Karratha (‘000) Settlement Number Min $ Max $ Average $

1000 325

300 Port Hedland 1 $400,000 $400,000 $400,000 900

275 800 South Hedland 3 $370,000 $550,000 $490,000 250

700 225 Karratha 8 $275,000 $395,000 $322,397

200 Advertised Dwelling 600

175 Onslow 2 $550,000 $800,000 $675,000 500 150

Average Price Average 400 Newman 13 $285,000 $399,000 $316,385 125

100 300 Roebourne 1 $260,000 $260,000 $260,000 75 200 Average Advertised Price No. Dwellings Advertised 50 Point Samson 2 $595,000 $595,000 $595,000 100 25 Wickham 1 $340,000 $340,000 $340,000 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2005 2006 2007 2008 2009 2010 2011 2012 2013 (Data Source: PDC, 2013)

(Data Source: PDC, 2013) 24 Shire of Roebourne Economic Prospectus 2013 What we do 25

New Business Table 21: Tourism While the Shire’s economy is dominated by the resource Karratha Additional Floorspace Requirements Tourism is an important element because it enhances sector, there are a multitude of other business opportunities, economic diversity, quality of life for residents and indicated by the growth in the number of business Additional Floorspace creates job opportunities. Within the Shire lie world Retail registrations in the last decade (an average increase of Required (sqm) class attractions such as the 42 islands of the Dampier 104 new business registrations per annum– Figure 14). Archipelago, the ancient rock art of the Burrup Supermarkets 4500 Peninsula, historic towns of Roebourne and Cossack and Figure 14: industrial tourism of some of Australia’s largest resource No. of New Businesses Other food 600 projects. There are more than 114,000 visitors to the 160 Shire per annum (2010) of which 87% are domestic and

140 13% international. The estimated visitor nights total over Dept Stores 2500 one million with 72% domestic and 28% international. 120 The average length of stay is seven nights for domestic 100 Clothing 650 travellers and 21 days for international. Accommodation occupancy runs above 80%. Over 60% of domestic 80 Household Goods 5500 visitors state ‘business’ as the main purpose of their 60 trip, with the remaining visitors coming for the region’s attractions or to visit family/friends. It is estimated that 40 Other retail 3900

New Business Registrations / Year approximately 750 people are employed in tourism related 20 occupations such as retail, accommodation, cafes/ Hospitality and services 2500 restaurants, cultural and recreational activities which 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 accounts for about 5% of total employment within the

(Data Source: ABR, 2010) Total 20,150 Shire. Total spend is estimated at $110 million per annum. The Shire of Roebourne is the principal funding body Commercial Property Total Floorspace 61,150 for the Karratha and Roebourne Visitor Centres which With the expectation that the number of new businesses provide visitor information services for the area. Net Increase 67% will increase as the Shire’s economy diversifies, there are Table 22: nearly 55,000 sqm of additional commercial and residential Shire of Roebourne Visitor Centre Statistics floorspace being made available in the Shire’s townships 2007/8 – 2011/12 (Tables 9 and 10). This will be supported by over 15,000ha Additional Floorspace Commercial of industrial land in Karratha Industrial Areas. Required (sqm) Location KVC Visitors RVC Visitors For the last quarter of 2012 and first quarter of 2013, advertised average lease costs for office space in the Pilbara Commercial or office 6300 fluctuated between $600-$800 per square metre per annum. 2007-08 45714 16560 For the same period, average industrial/warehouse space Government 5400 remained steady at around $250 per square metre annually. 2008-09 50101 13380 The Pilbara average sales for office space were $6,537 Community services 4500 per square metre whilst industrial/warehouse properties 2009-10 43257 13371 averaged $1,705 per square metre (PDC 2013). Total Increase 16,200 Table 20: 2010-11 45014 15667 Shire of Roebourne Township Floorspace Total Floorspace 42,781 2011-12 40111 15512 Existing Floor- Potential Total Location Net Increase 62% space (sqm) (sqm) (Data Source: KVC and RVC Annual Reports 2007/8 – 2011/12)

Cossack - 200 (Data Source: WAPC, 2009)

Dampier 3000 2000

Karratha 34,330 48,000

Point Samson 250 300

Roebourne 1010 1200

Wickham 2750 3250

Total 41,340 54,950

(Data Source: WAPC, 2009) 26 Shire of Roebourne Economic Prospectus 2013 What’s happening in our region 27

What’s happening in our region

Growth Scenarios Figure 15: Population growth is highly dependent on economic Shire of Roebourne Population Scenarios (‘000)

activity in the Shire which in turn is dependent on world 70 economic conditions at any time. For that reason three growth scenarios have been proposed to help inform 60 future planning. The Low Growth Scenario assumes limited economic diversification and no substantial 50

resources projects. The Mid growth scenario assumes 40 some economic diversification and the High Growth Scenario assumes significant economic diversification. 30

Table 23: 20 Population Growth Scenarios 10

Scenario 2011 2016 2021 2026 2031 2036 2011 2016 2021 2026 2031 2036

High 22900 43559 52075 60837 62925 65012

(Data Source: Syme Marmion) Mid 23927 29232 34442 38630 42430

Low 22900 25000 26000 27300

Opportunities and Constraints This growth presents a range of business, employment and lifestyle opportunities. However, there are supply bottlenecks and issues associated with accelerated demand for resources, housing and people. Housing prices have grown well above national trend largely because supply has been unable to keep up with demand and median household wages are twice the national average. In part this has stifled the expansion of non-resource related businesses, particularly those in the service industry. Plans and projects are well advanced to address these issues, diversify the local economy and thereby create new investment and lifestyle opportunities. Major community projects underway or under planning for Karratha and the other settlements are summarised in the table below. Table 24: Selected Major Civic Projects

Project Details Cost Lead Agency Timeline

Creation of a main street, Karratha Town Centre Shire of Roebourne, LandCorp, civic amenity and additional $65 million 2013/14 Revitalisation Royalties for Regions Roebourne is a Shire on the move. commercial/retail space

With nearly $13 billion dollars worth Extended consulting and $ 207 Hospital Upgrade procedure rooms, additional beds State Government 2015 million of infrastructure projects under and general renovations construction in the Shire, and a further $27 billion under consideration, there is Airport Upgrade Terminal Refresh and Upgrade $ 32 million Shire of Roebourne 2014 significant demand for labour and land. Community sporting and aquatic Karratha Leisureplex $64 million Shire of Roebourne 2013 facilities

Undergrounding Power in Pilbara Underground Shire of Roebourne, Horizon Karratha, Roebourne, South $130 million 2013/14 Power Project Power, State Government Hedland and Onslow 28 Shire of Roebourne Economic Prospectus 2013 Where are we heading 29

…with a diversified economy, a healthy local community which demonstrates Where we are headed demographic balance, affordability, high quality amenity, and infrastructure. It is Planning for Growth Opportunities The Shire of Roebourne, along with its State and Federal The Shire of Roebourne is a dynamic local government a place of choice, to work, visit, grow up, counterparts and industry partners, have developed a servicing the most productive region in Australia. Our raise families and age gracefully. number of plans to diversify the local economy, release townships are all expected to grow in the wake of bottlenecks and improve the overall quality of life in the sustained resources growth. There is significant private region. Recognising the value of the Shire’s vibrant and and public sector investment in key infrastructure and cohesive community, more than one billion dollars worth quality of life, creating numerous business and lifestyle Figure 17: Artist’s Impression of Sharp Avenue of community infrastructure upgrades have been put in opportunities. - courtesy of LANDCORP place. Broadly these are focussed on: If you are interested in investing or relocating to the · Delivering housing affordability and diversity Shire of Roebourne, or just exploring business or career opportunities, then we strongly encourage you to · Improving health and medical services contact us. · Ensuring high quality education Cr Fiona White-Hartig · Providing a range of formal and informal recreation Shire President amenities Chris Adams · Enhancing the diversity of retail and other commercial Chief Executive Officer services John Verbeek · Attracting and retaining a skilled workforce Economic Development Advisor · Maintaining efficient transport linkages Tel: 08 9186 8555 Email: At the forefront of these projects is the Karratha: City [email protected] Web: of North Plan, which seeks to position Karratha as the www.roebourne.wa.gov.au primary town in the Pilbara offering an extended range of retail and community services. The vision is a more Futher information liveable and compact regional city. The Shire has a range of informative online data sources Underpinning this growth will be a strong commitment to available from our website: sustainability. Major plans to make this transition include Population Forecast town centre revitalisation with a main street precinct http://forecast2.id.com.au/Default and additional commercial and residential floorspace; aspx?id=381&pg=5000 upgrades to existing community and leisure facilities; higher capacity water and power; greening projects; Community Profile expanded medical services; and further investments in http://profile.id.com.au/roebourne/home local education. Community Atlas http://atlas.id.com.au/roebourne Economic Profile http://economy.id.com.au/roebourne/home 30 Shire of Roebourne Economic Prospectus 2013 Key reference documents 31

Key reference documents

ABS, 2011, Census, Australian Bureau of Statistics, Canberra ABS, 2007, Business Register, Australian Bureau of Statistics, Canberra ABS, 2011, SEIFA, Socio-Economic Index for Areas, Australian Bureau of Statistics, Canberra ABS, 2010, National Regional Profiles, Catalogue Number 1379.0.55.001, Australian Bureau of Statistics, Canberra BITRE, 2012, Domestic Aviation Activity Annual 2012 DEEWR, 2007, Small Area Labour Markets Australia, Department of Education, Employment and Workplace Relations, Canberra DEEWR, 2009, Small Area Labour Markets Australia: Backcast Data, Department of Education, Employment and Workplace Relations, Canberra DEEWR, 2010, Small Area Labour Markets Australia, Department of Education, Employment and Workplace Relations, Canberra DEEWR, 2010a, Small Area Labour Markets Australia: Backcast Data, Department of Education, Employment and Workplace Relations, Canberra FPA, 2010, Annual Report, Fremantle Port Authority, Fremantle DMP, 2009, Western Australian Mineral and Petroleum Statistics Digest, Department of Minerals and Petroleum, Perth PICC, 2009, Planning for resources growth in the Pilbara: revised employment & population projections to 2020, Port Hedland PDC, 2013, Pilbara Housing and Land Snapshot, Pilbara Development Commission, Karratha PDC, 2013, Pilbara Commercial Property and Land Snapshot, Pilbara Development Commission, Karratha Shire of Roebourne, 2010, City of the North Plan Shire of Roebourne, 2009, Karratha 2020 Plan Tourism WA, 2010, Shire of Roebourne Overnight Visitor Fact Sheet WAPC, 2009, Pilbara Framework Regional Profile, Western Australian Planning Commission, Perth WAPC, 2010, Karratha Regional HotSpots Land Supply Update, Western Australian Planning Commission, Perth WAPC and Department of Planning, 2012, Pilbara Planning and Infrastructure Framework, Perth

Additional online data sources ePilbara - The Pilbara Business Capability Register Karratha and Districts Chamber www.epilbara.com.au of Commerce and Industry www.kdcci.asn.au Pilbara Development Commission www.pdc.wa.gov.au Small Business Centre West Pilbara www.sbcwp.com.au Regional Development Australia Pilbara http://www.rdapilbara.org.au/ Karratha Business and Community Directory Online www.karrathadirectoryonline.com.au Project Connect www.projectconnect.com.au Karratha Airport Live Flight Information www.karrathaairport.com.au Welcome Road Karratha WA 6714 PO Box 219 Karratha WA 6714

Tel: 08 9186 8555 Fax: 08 9185 1626

Email: [email protected] Web: www.roebourne.wa.gov.au